Vanguard U.S. Value Fund (VUVLX): 14% Loss on 12/17/07
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REWahoo
Give me a museum and I'll fill it. (Picasso) Give
Dividend?
Poundkey
Recycles dryer sheets
I want to add one post script. When I checked the fund last night there was only the 14% loss and no credit to the account, leading to my confusion. This morning there was a credit for short term, long term gains and dividends, offsetting most but not all of the loss on 12-17-07. I guess I am looking at my accounts too often.
REWahoo
Give me a museum and I'll fill it. (Picasso) Give
The shortfall was the reduction in share price due to normal daily price changes. The market was down on the 17th.
W2R
Moderator Emeritus
Same thing happened to Vanguard Windsor (VWNDX). Yesterday it went down from [-]$19.76 [/-]
(edited to add: NO - - my mistake, $17.98, thanks CFB)
to $15.53, due to a dividend, short term, and long term capital gains. The number of my shares went way up too, for that reason, since I have directed Vanguard to reinvest everything.
I think a lot of Vanguard funds do this in December. Last year was the first time I experienced this happening, and like you, I was a little concerned! But all is well. This year I am blase and worldly about it.
(edited to add: NO - - my mistake, $17.98, thanks CFB)
to $15.53, due to a dividend, short term, and long term capital gains. The number of my shares went way up too, for that reason, since I have directed Vanguard to reinvest everything.
I think a lot of Vanguard funds do this in December. Last year was the first time I experienced this happening, and like you, I was a little concerned! But all is well. This year I am blase and worldly about it.
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W2R
Moderator Emeritus
I think it probably is the same situation. If you go here,
American Funds - Detailed Fund Information - Capital World Growth and Income Fund - Class A
click on the tab for historical distributions, and put in "December, 2007", it says there was both a dividend and Capital gains distribution on the 17th.
cute fuzzy bunny
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Wow, those are some huge distributions...
W2R
Moderator Emeritus
Some of it was market loss, but yeah, it was kind of a shock. And OOPS!!! I made a mistake in the value last Friday, which was $17.98, not $19.76. So, I just corrected it above.
mickeyd
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I agree. Gotta love those index funds like TSM at this time of the year!
cute fuzzy bunny
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
One of the reasons I got out of the Windsor II fund a few years back. Nice fund, good returns, but MAN did they drop some heavy distributions at the end of the year.
W2R
Moderator Emeritus
That is sure understandable! I think Windsor II is even worse than Windsor about that, or was last year anyway. I have Windsor in my Roth IRA, but I will probably be getting out of it in 2008 to make room for even more tax-inefficient stuff that needs to be there.
Large cap value is included in VTSMX Total Stock Market (which I intend to include in taxable), and I will probably just forget about Windsor.
bssc
Moderator Emeritus
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Good thing that they are in the Roth instead of being taxable.
cute fuzzy bunny
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Hold on, i'm still modeling a 14% SWR based on a hocu$ian 1.5% TIPS strategy...
W2R
Moderator Emeritus
Definitely.
Well, I hope you figure that one out! No TIPS in my future, most likely, and I'll be happy with 3.5%. "All models are wrong, but some are useful." - - G.E.P. Box, 1979
